Monday, September 29, 2014

A Professor faults the government over FDI investment flows

A senior lecturer of economy yesterday raised his
voice in protest against the continued trend by government of allowing free tax
holidays to foreigners coming in the country through Foreign Direct Investment
(FDI) systems, saying that a move denies the government with revenue. Professor
Humphrey Mushi of the University of Dar es Salaam (UDSM) made a concern
yesterday in Dar es Salaam when contributing to a debate on a topic titled, “Working with government to enhance
accountability”which was presented
for discussion at Breakfast talk organized by Policy Forum held at British
Council. Earlier, discussants over the topic poured much
blame to the government when the topic was put across to the audience for
discussion, with some saying that, the government is not serious to hold
accountable its top most senior officials who makes various mistakes and never
tried before the court of law. Elaborating on the idea, he said in an exclusive
interview that, under the trading system, various international companies which
come to invest in the country are entitled to trade feely for five years of the
trading period, an aspect which the government continues to lose billions of
money as tax revenues. Free tax
holidays was introduced after the establishment of an Investment Act of 1997
which provides a period of five years for establishing investment project
during which projects are entitled to tax exemptions on capital goods, an
aspect which he said needs to be put forward for discussion as a nation. He
said offering of too much taxes to such investors, the government would not maximize
profit margin for the business invested, citing an example of changing of names
of business entity such as Kilimanjaro hotel and Serena hotel once used to be
known as Sheraton and later Royal Palm. All these he said are such one way of
taking a loophole to evade necessary taxes. He noted that, if tax revenues
disappear in such a dubious manner, coupled by tax exemptions, the rate at
which the national debt is growing would keep on increasing at a higher pace. He
further noted that, if this situation is effectively controlled, then the
government would be in a position to save a lot of money and be able to engage in
various development projects without depending on external aid. However, he
suggested that, the government need to make amendments on the Act so as to save
the nation from losing its capital revenue as it does not match with the
current business environment under which people are trading. Contributing over
the topic focusing on ethical behavior, executives of some entrepreneurs in the
country have noted that, there are two things which retard the entrepreneurs’
development and cited corruption and bureaucracy which h they say are still
hampering their progress. Speaking in support of the matter, another renowned
economist and senior lecturer of economy at University of Dar es Salaam (UDSM)
Professor Haji Semboja said that, the government’s policies and laws guiding
FDI were good when introduced in early 1990s with a view to attract investors. He
said in a telephone interview yesterday when contacted for more comments in
regard to the issue and noted that, it is high time now that such laws and
policies need to be reviewed in order to save such large lump sum of money
unpaid to government coffers. However, he queried if the implementation of this
could be effected by government officials knowing well that, are the once who
initiated such policies without knowing what could be the impact of it later on
as years go by. According to Prof. Semboja, he is of the view that, government
officials might be afraid or feel ashamed to revert such policies at this time
when the government incurs huge loses as already they had entered contracts
which are bound by such policies that favour them. He cited example of giant
multi-national mining companies operating in the country after the government
entered contracts with them, and noted that, the aim was to create conducive
environment for them in order to enjoy their investments through physical
incentive guarantee without knowing what could happen later on. He suggested
that, as long as the mistake was done, then it could be good enough if the new
constitution should help highlight any changes that would alter the already
entered contracts and apologies for the mistake done in order to save the
nation. However, he further suggested for another option that “otherwise there
should be a revolutionary political change of power in the country with new set
up as the current leaders have no ideas to react over the matter for they know
the mistakes they had committed. “If our leaders touted for the sale of
government’s houses in Oyster bay estates in Dar es Salaam city and most of
them were sold among themselves silently, whom do you think is in a position to
bark against what is being siphoned by investors” he querried. The Chairman of
EASB Group Paul Mashauri said that, doing business in Tanzania is an uphill
task owing to bad habits being practiced and shown by some service providers
citing that, corruption and bureaucracy have increased at a higher level. He
noted that the Small Medium Enterprises (SMEs) hardly becomes successful and
never developed in the country due to increased corruption. However, he noted
that, this is open right as from seeking for contracts, silences, loans and
many others. “To become a successful in that environment one has to suffer as
most attendants do not abide by business ethics for their minds are absorbed
and engulfed with corruption”, hesaid
adding that in this way most of them fails to develop because the system does
not provide them grow and instead they come to collect taxes only. Another aspect he described is when one needs
to take a loan from the bank and noted that, collateral is needed. But it is
unfortunate that most SME traders do not have them, this leads to imminent
closure of a business entity for lack of capital. However, he note3d that, the
government needs to improve the environment otherwise entrepreneurs’ capital
won’t develop, he said. Contributing for the suggestion over the matter, the Director
of an NGO called Community Development for All (CDFA) that deals with rural
empowerment Godfrey Pratace Sangana said that, researchers should be engaged in
revealing wrong doers in society so as to help the police and the PCCB
officials in the country get rid of them. However, he noted that, in this way
the government would be at least in a position tyo end or stop completely the
issue of corruption which tom some extent its roots have grown so deeper. Presenting
his paper titled, “incentives for business ethical conduct”, the Director of an
NGO known as Leadership Development of QI Management Solutions Joel Nanauka noted
that, there is an ethical work performance on business dealings in the country
that needs to be averted. He noted that, the impact of unethical behavior has
increased at a higher rate by 75 percent in the country in such a way that both
private and government sectors should incorporate together to tackle the
phenomenon to bring the situation to normalcy so as to promote economic
development. However, he has asked the media to help in advocacy the issue as
the rate is increasing an aspect that it would impede important development
activities from taking place, thus the mover of reducing poverty in the country
would indefinitely fail.

AWARD 1

I won the second prize in policy category of the African Information society Initiative ( AISI) awards 2004 which is annually organized by the United Nations- Economic Commission for Africa ( UNECA) based in Addis-Ababa, Ethiopia. On the first photo above standing with other awardees after the Ceremony at the National Settlers monument in Grahamstown, South Africa.This was during the 8th Highway Africa Conference.The second photo shows the cross section of Jounalists from different African countries who attended the ceremony.

AWARD 2

I also won the AISI-GKP/SDC Media Award special reporting on WSIS process and Africa, and conferred with the award in Tunis, Tunisia during WSIS summit in 2005. See the photo above.

AWARD 3

Winner on the Media Competition on writing about " Stigma denial and Discrimination" associated with HIV/AIDS. This was organized by theAssociation of Journalists Against Aids in Tanzania ( AJAAT). On the Photo above President Jakaya Mrisho Kikwete of Tanzania, ( then the Minister for Foreign Affairs and International Cooperation) was the guest of honour during the award giving ceremony.This was at Maelezo auditorium in Dar-es-Salaam September 2005.

AWARD 4

Winner on the Media Competition on writing about "Vulnerable Children" associated with HIV/AIDS This was organized by the Association of Journalists Against Aids in Tanzania ( AJAAT)

AWARD 5

Winner of the National ICT Media Award organized By SWOPNET in the Country. On the photo above Morogoro Regional Commissioner, Brigadier General ( Rt) Saidi Kalembo was the guest of honour during the award giving ceremony which was held at New Sarvoy Hotel in morogoro town.I was awarded a Mobile phone and a tape-recorder.

AWARD 6

I participated in the Media Competition in writing about VCT (Voluntary Counseling and Testing) in Tanzania which was held between July 15th and October 30th 2008 whereby I emerged among the top five winners. The competition was under the program known as “Tanzania bila Ukwimwi inawezekana” which literally means, Tanzania without AIDS disease transmission is possible”. This is a program which was organizedby the Association of Journalists Against AIDS in Tanzania (AJAAT) under TACAIDS funding. In the photo, I am being presented with a certificate of participation by the Chairman of the Tanzania Commission for AIDS (TACAIDS) Dr. Fatma Mrisho in a colorful ceremony which was held on 22nd December 2008 at Tanzania Information Centre in Dar es Salaam.

AWARD 7

AWARD 8

AWARD 9

I was among the top 17 best selected students who excelled in their final examinations of the 2010/2011 academic year and awarded with the Vice-Chancellor’s prize. I scored 4.5 GPA (First Class) in BA in Journalism. Above I am being given a certificate by the Chairman of the Open University of Tanzania Board of Senate. Standing at the centre facing camera is the Vice-Chancellor, Professor Tolly Mbwette. Extreme left partly hidden is the Deputy Vice-Chancellor (Academic) Professor Elifas Bisanda. This occasion took place during the convocation meeting, a day before the graduation day at the prospective permanent headquarter of the Open University of Tanzania which is currently under construction at Bungo-Kibaha in Coast region 40 kilometers away west of Dar es Salaam city.